How an Economy Grows and Why It Crashes

TAKEAWAY
TAKEAWAY

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So the good news is that now we have fi nally learned to 
be more realistic…right? Wrong. Even after the collapse 
of the mortgage market, people still don’t understand how 
home prices are infl uenced by government policies. And so 
while the Bush and Obama administrations have committed 
massive amounts of government resources to prop up the 
defl ating market, people still don’t recognize how these 
trusses are simply extending the pain and setting us up for an 
even bigger fall.